1. EC02 – E-Commerce Progression
Learning about e-Commerce
technology and tools
2. Objectives of EC Progression
• Transaction Security
• Encryption and Cryptography
• Digital Signature and Security (DSS)
• Electronic Data Interchange (EDI)
• Secure Electronic Transactions (SET)
• E-Payment and E-Transactions
3. Prerequisites of Course
• E-Commerce Fundamentals
• E-Business Fundamentals
• Computer Network Fundamental
• Internet Fundamental
• Business Transaction and Fundamental
• Understanding of Mobile Banking Applications
4. E-Commerce & E- Business
Technical Concepts for New Era
Business
5. Definitions and Concepts
Electronic Commerce
EC describes the buying, selling, transferring or
exchanging of products, services or information
via computer networks, including the Internet.
Electronic Business
EB is a broader definition of EC, including buying
and selling of goods and services, and also
servicing customers, collaborating with partners,
conducting e-learning and conducting electronic
transactions within an organization.
6. Definitions and Concepts (continued)
Pure versus Partial Electronic Commerce
depends on the degree of digitization involved.
Brick-and-mortar organizations
These are purely physical organizations
Virtual organizations
These are companies that are engaged only in EC (Pure Play)
Click-and-mortar organizations
These are those organizations that conduct some e-commerce
activities, yet their business is primarily done in the physical
world (Partial EC)
7. Types of E-Commerce
Business-to-Consumer (B2C)
The sellers are organizations and the buyers are
individuals.
Business-to-Business (B2B)
Both the sellers and buyers are business organizations.
B2B represents the vast majority of e-commerce.
Consumer-to-Consumer (C2C)
An individual sells products or services to other
individuals.
8. Types of E-Commerce
Business-to-Employee (B2E)
An organization uses e-commerce internally to provide
information and services to its employees. Companies
allow employees to manage their benefits, take
training classes electronically; buy discounted
insurance, travel packages, and event tickets.
E-Government:
The use of Internet Technology in general and e-
commerce in particular to deliver information about
public services to citizens (called Government-to-
citizen [G2C EC]), business partners and suppliers
(called government-to-business [G2B EC])
9. E-Commerce Business Models
Affiliate marketing
Vendors ask partners to place logos or banners on
partner’s site. If customers click on logo, go to
vendor’s site, and buy, then vendor pays commission
to partners.
10. E-Commerce Business Models
Viral marketing
Receivers send information about your product to their
friends.
Group purchasing
Small buyers aggregate demand to get a large volume; then
the group conducts tendering or negotiates a lower
price.
Online auctions
Companies run auctions of various types on Internet
Bartering Online
11. E-Commerce Business Models
Product customization
• Customers use the Internet to self-configure products or
services.
• Sellers then price them and fulfill them quickly.
Deep discounters
• company offers deep price discounts
Membership
only members can use the services provided.
12. Benefits of E-Commerce
Benefits to organizations
Makes national and international markets more accessible
Lowering costs of processing, distributing, and retrieving
information
Benefits to customers
Access a vast number of products and services around the
clock (24/7/365)
Benefits to Society
Ability to easily and conveniently deliver information,
services and products to people in cities, rural areas and
developing countries.
13. Limitations of E-Commerce
Technological Limitations
Lack of universally accepted security standards
Insufficient telecommunications bandwidth
Expensive accessibility
Non-technological Limitations
Perception that EC is unsecure
Unresolved legal issues
Lacks a critical mass of sellers and buyers
14. Ecommerce Exchanges
• Vertical Exchanges
• It connect buyers and sellers in a given industry.
• Horizontal Exchanges
• connect buyers and sellers across many industries
and are used mainly for row materials
• Functional Exchanges
• needed services such as temporary help or extra
office space are traded on an “as-needed” basis.
